CARVERSAL

In a world where car prices continue to rise, many buyers often look for affordable, practical, and fuel-efficient vehicles that won’t drain their wallets much. No matter if you're a first-time car buyer, a student, or someone needing a second car for city commutes, the search for the cheapest car in the world could be considered more relevant than ever. 

These budget-friendly cars may lack luxury features, but they make up for it with low maintenance costs and impressive mileage. Undoubtedly, the cheapest car in the world is the Tata Nano, as no other car has matched that aura or pricing.

In this article, we’ll explore some of the world’s most affordable car options available to date, including the iconic Tata Nano and other global contenders. If you’re looking for decent performance and value, then these cars would be the perfect solution. 

The Cheapest Car in the World: Tata Nano

If you are in the hunt for the cheapest car in the world, the Tata Nano is the ultimate stop. Despite being discontinued, it remains the cheapest car ever in the automobile sector. Tata Motors launched the Tata Nano model in 2008. Right after its launch, the compact car gained immense global attention for being the world’s most affordable car. 

The Tata Nano was designed to be a budget-friendly option for Indian families. It featured a compact 624cc twin-cylinder petrol design. It delivers 37 bhp and impressive mileage of around 24 km/l. It was extremely easy to maneuver even on the congested Indian city roads. It had a rear-wheel drive layout, rear-engine, and a very lightweight build. 

Some of the basic features it offered include front power windows, air conditioning, a music system in higher variants, and so on. With an innovative concept, the Tata Nano provided major features that a car should have. It was priced at just ₹1 lakh. 

Despite the unique concept and low price tag, the car struggled to maintain its hype due to limited safety features and perception issues. However, it remains a significant milestone in the history of the Indian automobile sector as the Tata Nano was a game changer. Though it had been discontinued in 2018, rumours say it might have a revival, as an electric vehicle. 

Other Notable Cheapest Cars Around the World (2025 Updated List)

In 2025, some of the cheapest cars globally include the Maruti Suzuki Alto, Renault Kwid, and Nissan Versa. These vehicles are the perfect choice for budget-conscious purchasers. Moreover, you can benefit from the basic features, exceptional fuel economy, and compact design that these cars offer. 

No matter if you’re a first-time buyer or looking for a durable option for urban commutes, these options are affordable without compromising on essential functionality. Now, it’s time to dive into the list of some notable, cheapest cars available globally.

Chery QQ

The Chery QQ is a compact city car from China. It is known for its ultra-affordable pricing and small footprint. This compact and affordable car was launched in 2003 by Chery Automobile. It has a decent-performing 0.8L to 1.1L engine and offers good mileage and basic features ideal for city commuting. The low cost of the Cherry QQ car made it a popular choice in developing markets. Despite limited safety features, the QQ gained fame for offering great value for money. This car model also helped Chery establish itself in the international low-budget segments.

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Renault Kwid

The Renault Kwid is a stylish entry-level hatchback designed primarily for the Indian market. This affordable car was launched in 2015 for Indian purchasers. It offers SUV-inspired looks, high ground clearance, and impressive fuel efficiency. It includes exceptional features like a touchscreen infotainment system, a digital instrument cluster, and affordable pricing. All these impressive features help it stand out among budget cars. It is especially popular among first-time car buyers seeking modern features at a competitive price.

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Tata Tiago

The Tata Tiago is a well-rounded budget hatchback from Tata Motors. Launched in 2016, it gained immense popularity in the budget car segment. The Tata Tiago is known for offering supreme safety features. It also scored well in crash tests and includes dual airbags and ABS as some basic features. Its sporty design, digital infotainment, and comfortable interior make it a top choice in its segment. If you seek reliability and style, then this could be an ideal choice for you. 

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Maruti Suzuki Alto 

The Maruti Suzuki Alto is one of India’s most iconic and best-selling small cars. Maruti Suzuki released its Alto model in 2000. This car features a compact design, high fuel efficiency, and low maintenance costs. The Alto is ideal for city use and first-time buyers. It has become a household name in India and worldwide due to its reliable offerings like simplicity, a wide service network, and affordability. Over the years, it has improved with better safety and tech features while retaining its value appeal.

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Nissan Versa

The Nissan Versa is an affordable subcompact sedan popular in markets like the U.S. It offers a spacious cabin, a smooth ride, and great fuel economy. The Versa is known for its reliability and budget-friendly pricing. It includes safety features like automatic emergency braking and lane departure warning. These features are available even in the base trims. The Versa remains a strong contender in the entry-level sedan category because of its amazing combination of practicality and comfort. 

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Datsun Redi-GO

The Datsun Redi-GO is a small urban hatchback introduced in India in 2016. This compact hatchback is built on the same platform as the Renault Kwid. It offers a 0.8L or 1.0L petrol engine with manual and AMT options. Its tall-boy design ensures good cabin space and visibility. It is seamlessly lightweight and fuel-efficient. The Redi-GO caters to city drivers looking for affordability and easy maneuverability. Its competitive price point made it a favorite among budget car shoppers.

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Toyota Corolla 

The Toyota Corolla is a globally best-selling compact sedan known for its reliability, durability, and low maintenance costs. This model was initially launched in 1966. Now, it has evolved into a feature-rich, fuel-efficient car with hybrid variants in recent generations. It is known for offering a smooth ride and premium interiors in all its generations. While not the cheapest globally, it offers long-term value and low ownership cost. It could definitely be a smart choice in the affordable mid-size sedan segment.

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Wuling Hong Guang Mini EV

The Wuling Hong Guang Mini EV is one of the world’s most affordable electric vehicles. It is designed for urban commuting and equipped with modern technologies. This compact yet efficient option offers seating for four, a top speed of around 100 km/h, and a driving range of up to 170 km. Its low price, minimal maintenance, and eco-friendly performance have made it extremely popular in China, especially among young and first-time car buyers.

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Top Brands For the Cheapest Car in the World 

Let’s take a look at the list of some top global brands known for producing the cheapest cars and having a vast market around the world. These manufacturers are recognized for their focus on affordability, practicality, and accessibility, making car ownership possible for millions of budget-conscious buyers:

• Maruti Suzuki

• Renault 

• Tata Motors 

• Dacia (by Renault)

• Wuling (China)

• Geely

• Hyundai 

• Chevrolet (Baojun in China)

Tips Before Buying a Cheap Car

Before opting for a cheap and low-priced car, consider the following tips:

• Determine your maximum spend, including taxes, insurance, and maintenance.

• Compare features, mileage, safety ratings, and user reviews of various budget cars.

• Ensure the car offers at least basic manufacturer warranty coverage.

• Choose a car with good mileage to save on long-term running costs.

• Opt for a model with strong resale potential for future flexibility.

• Always go for a test drive to check comfort, handling, and overall performance.

• Pick a brand with accessible service centers and affordable parts.

READ ALSO: Renault Kiger India’s Cheapest Automatic SUV To Get A Facelift!

FAQs

Ques 1. Which is the cheapest car in the world in 2025?

Ans. Currently, the Maruti Suzuki Alto remains the cheapest car in the world. 

Ques 2. Are cheap cars reliable for daily use?

Ans. Yes, most budget cars offer decent reliability for short commutes and city driving. 

Ques 3. Can you use budget cars for long-distance travel?

Ans. They can be used, but may lack comfort and power for long-distance and extended highway journeys. 

Ques 4. Can you get electric vehicles in the budget category? 

Ans. Yes, models like the Wuling Mini EV and Dacia Spring are affordable electric options.

Final Thoughts: Is a Cheap Car Worthwhile?

Choosing a cheap car can be a smart decision, especially for first-time buyers or budget-conscious individuals. While these vehicles may lack premium features or high-end performance, they often deliver impressive fuel efficiency, easy maintenance, and affordability in both purchase and running costs. 

Modern budget cars also include essential safety and connectivity features. This makes them suitable for daily commuting and urban use. However, it’s crucial to analyse your needs, such as space, mileage, and usage frequency, before choosing a low-cost option.

If your expectations are aligned with what budget-friendly models offer, a cheap car can indeed be a worthwhile investment. Through these affordable cars, you may get great value without compromising basic functionality and reliability.

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